Podgorica, Montenegro, December 19, 2017—IFC,
a member of the World Bank Group, is lending €7.5 million (the equivalent
of approximately $8.8 million), and mobilizing a €7.5 million parallel
loan from Erste Bank, to finance a key section of ring road in Montenegro’s
capital, Podgorica, and boost the development of vital infrastructure.
The new loan to the city’s government will finance the 3.5-kilometer south-western
section of the ring road, which includes Moraca bridge. It complements
two previous IFC investments in the ring road: a loan of €10.1 million
(the equivalent of approximately $11.9 million) to construct the eastern
portion in 2010, and €10.7 million (the equivalent of approximately $12.6
million) in 2012 to construct the Ribnica bridge. Both projects have been
“Having IFC as a long-term partner enables us to continue working on the
development of this vital road infrastructure, which is helping to reduce
congestion, lower greenhouse gas emissions, and reduce vehicle operating
costs,” said Slavoljub Stijepovic, Mayor of Podgorica.
Road projects have been recognized as a priority for the country, to eliminate
a critical bottleneck for regional transport along the corridor connecting
Serbia to the Adriatic Coast and support the tourism industry, which is
critical to the local economy. IFC’s engagement has already assisted in
reducing the travel time along the eastern side of the ring road from 12.5
minutes to 7.5 minutes.
“IFC has a strong partnership with the city of Podgorica, as this third
investment highlights, and we hope to expand our support to other parts
of Montenegro,” said Thomas Lubeck, IFC Regional Manager for Central and
South East Europe. “The financing we provide to Podgorica reflects our
strong commitment to improving municipal infrastructure for a better quality
of life for citizens.”
IFC is also providing comprehensive support to Podgorica to build capacity
and meet global best practices in project development through its Cities
Platform, funded by the Austrian Federal Ministry of Finance. This includes
improving project procurement, implementation standards, and local capacity
for environmental and social risk management and reporting. IFC recently
led a two-day training for the Podgorica Roads project team to familiarize
them with IFC’s environmental health and safety requirements, and assist
the city in developing a Communication and Stakeholder Engagement Plan.
Over the past decade, IFC has provided more than $12 billion in financing
for 350 urban infrastructure projects globally and provided advisory services
to cities in more than 60 countries.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In FY17, we delivered a record $19.3
billion in long-term financing for developing countries, leveraging the
power of the private sector to help end poverty and boost shared prosperity.
For more information, visit www.ifc.org
For more info about Erste bank, please visit: www.erstebank.me
For more info about the City of Podgorica, please visit: www.podgorica.me/en